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Learn how the risk of underinsurance can impact your clients

So what is underinsurance?
Underinsurance can occur when a policyholder’s property insurance does not offer a suitable level of protection, which can potentially expose them to a financial shortfall should they ever make a claim.
Typically, some of your clients could be at risk of underinsurance as their insurance policies automatically renew every year. As such, without taking into consideration the changing economic landscape or their own circumstances, they may find themselves not suitably covered.
Find out more
about the risks of underinsurance and what it could mean for your clients
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What could this mean for your clients
If your clients renew their property insurance every year without taking into account inflation, or changes to the property (such as extensions, or improvements in fixtures and fittings such as a new kitchen), then their property could be at risk of being insured for less than the cost to rebuild it.
That means that, in a worst case scenario where they have to completely rebuild their property, the amount they would receive from an insurance claim might fall significantly short of the cost to actually fund the rebuild.
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How Vasek can help mitigate against the risk of underinsurance
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Ensuring that your client’s property insurance policies have adequate blanket cover or are index linked can help to mitigate inflation.
To help mitigate the impact of inflation, at Vasek we offer both blanket cover and index linking on the sum insured for rebuilding your clients’ property. This includes our policies for unoccupied property, landlord tenanted property, home and high net worth insurance. Find out more by contacting us:
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